Domestic indices hit new record high amid foreign fund inflows

Indian equity benchmarks made optimistic start and touched fresh record highs on Monday tracking gains in Asian counterparts. Domestic indices are trading firm in early deals amid foreign fund inflows. Foreign investors have injected close to Rs 33,700 crore in domestic equities in this month so far primarily due to interest rate cut in the US and resilience of the Indian market. Traders took encouragement with a latest report by the Reserve Bank of India (RBI) showing that India's net foreign direct investment (FDI) during the April-July period of the current financial year (FY25) rose to $5.5 billion compared to $3.8 billion in the year-ago period. Besides, the Reserve Bank data showed that India’s forex reserves rose by $223 million to a new all-time high of $689.458 billion for the week ended on September 13. 

On the global front, Asian markets are trading mostly higher as the focus shifted to U.S. GDP print, key inflation figures, surveys on global manufacturing, U.S. consumer confidence and durable goods orders data due this week that could shed further light on the Fed's rate trajectory in the months ahead. Japanese markets are closed for observation of the Autumnal Equinox holiday.

Back home, auto stocks are in focus as ratings agency ICRA said the competition between strong hybrid cars and electric vehicles (EVs) is expected to remain stiff, and each of them could have an eight per cent volume share in the Indian domestic passenger vehicle market by 2027-28. In 2023-24, strong hybrid cars and EVs each had a two per cent share in the domestic passenger market. In stock specific development, HFCL climbed as the company bagged deal from General Atomics to supply UAV subsystems.

The BSE Sensex is currently trading at 84799.92, up by 255.61 points or 0.30% after trading in a range of 84642.87 and 84862.89. There were 24 stocks advancing against 6 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.20%, while Small cap index was up by 0.60%.

The top gaining sectoral indices on the BSE were Telecom up by 2.54%, Oil & Gas up by 1.05%, Energy up by 0.90%, PSU up by 0.89% and Utilities up by 0.88%, while IT down by 0.09% was the sole losing index on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.69%, SBI up by 1.52%, Mahindra & Mahindra up by 1.35%, Adani Ports & SEZ up by 1.25% and NTPC up by 1.24%. On the flip side, ICICI Bank down by 1.13%, HCL Technologies down by 0.34%, Infosys down by 0.31%, Axis Bank down by 0.18% and Indusind Bank down by 0.11% were the top losers.

Meanwhile, in an effort to monitor and ensure the effective utilization of Capex funds by various ministries and departments, Union Finance Minister Nirmala Sitharaman has urged the Ministry of Housing and Urban Affairs (MoHUA) to ensure that the capital expenditure (Capex) target for the financial year 2024-25 (FY25) is met within the stipulated timeframe. Finance Minister stressed that the full budgeted allocation of Rs 28,628 crore should be utilized by the end of the fiscal year. She reiterated that the timely execution of these projects is essential for promoting economic growth and improving urban infrastructure across the country.

She also highlighted the need for timely and efficient use of these funds during a review meeting in New Delhi, as part of an ongoing series of reviews with ministries and departments that have significant Capex allocations in the Union Budget.

As per the ministry, a major part of the discussion focused on the Pradhan Mantri Awas Yojana (Urban) scheme, which aims to provide affordable housing in urban areas. Sitharaman emphasized the need to accelerate the progress under this scheme to address the growing housing needs in urban India. She also urged MoHUA officials to ensure that all necessary measures are taken to meet the targets set under the PMAY(U) program.

In addition to housing, the Finance Minister also emphasized the importance of urban transport infrastructure. She highlighted the need to meet Capex targets allocated for projects such as Metro Rail and the Regional Rapid Transit System (RRTS). These projects are crucial for improving urban mobility and easing congestion in growing cities.

The CNX Nifty is currently trading at 25896.10, up by 105.15 points or 0.41% after trading in a range of 25849.50 and 25911.70. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 2.06%, Bajaj Auto up by 1.71%, Adani Enterprises up by 1.57%, Mahindra & Mahindra up by 1.57% and Bharti Airtel up by 1.54%. On the flip side, ICICI Bank down by 1.00%, Eicher Motors down by 0.65%, LTIMindtree down by 0.53%, Wipro down by 0.45% and Hindalco down by 0.43% were the top losers.

Asian markets are trading mostly in green; Hang Seng surged 100.81 points or 0.55% to 18,359.38, Taiwan Weighted rose 87.66 points or 0.4% to 22,247.08, Shanghai Composite strengthened 19.58 points or 0.71% to 2,756.39, Straits Times rose 18.63 points or 0.51% to 3,643.39 and KOSPI added 6.53 points or 0.25% to 2,599.90, while Jakarta Composite was down by 18.53 points or 0.24% to 7,724.47.